Australia has a comparative advantage in producing coal if
A) it can produce it at a lower dollar cost than can other nations.
B) it has a larger quantity of skilled workers than do other nations.
C) it can produce a larger quantity than can other nations.
D) it can produce it at a lower opportunity cost than can other nations.

Question

Quizplus · Accepted Answer

Comparative advantage occurs when a country can produce a good at a lower opportunity cost than other countries. It's not about the absolute cost or quantity of production, but rather the relative efficiency in producing one good over another.

Australia Has a Comparative Advantage in Producing Coal If